I got through number 4, but now I don't understand what to do

29. Calculating the Cost of Jobs, Making Journal Entries, and Preparing an Income Statement. Racing Bikes, Inc., produces custom bicycles for professional racers. Each bike is built to customer specifications. During July, its first month of operations, Racing Bikes began production of four customer ordersjobs 1 through 4. The following transactions occurred during July.

1. Purchased bike parts totaling $14,400

2. Processed material requisitions for the following items:

Job 1	DM	$ 2,800.00
Job 2	DM	$ 1,250.00
Job 3	DM	$ 1,550.00
Job 4	DM	$ 780.00
Indirect Material		$ 1,075.00
Total		$ 7,455.00

3. Processed timesheets showing the following:

Job 1	DL	$ 500.00
Job 2	DL	$ 430.00
Job 3	DL	$ 465.00
Job 4	DL	$ 210.00
Indirect Labor		$ 985.00
Total		$ 2,590.00

4. Applied overhead using a predetermined rate of $30 per direct labor hour

5. Completed and transferred to finished goods jobs 1, 2, and 3

6. Delivered jobs 1 and 2 to customers, billing them $6,000 for job 1 and $3,500 for job 2 (Hint: Two entries are requiredone for the cost of the goods and another for the revenue.)

Required:

1. Calculate the production costs incurred in July for each of the four jobs.

2. Make the appropriate journal entry for each transaction described previously (1 through 6). Assume all payments will be made next month. (Hint: Use examples as a guide.)

3. How much gross profit did Racing Bikes, Inc., earn from the sale of job 2

4. Assume selling costs totaled $1,000 and that general and administrative costs totaled $2,200. Prepare an income statement for Racing Bikes for the month of July. (Assume there is no adjustment to cost of goods sold for underapplied or overapplied overhead.)